Bjorn Borg AB (BORG) AI Stock Analysis

• Market Cap: kr1.55B
• Dividend Yield: 4.95%
• Average Volume (3M): 12.04K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.53
• Revenue Growth: 9.20%
• EPS Growth: 11.72%
• Country: SE
• Employees: 168
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.61
• Shares Outstanding: 25,148,384
• 10 Day Avg. Volume: 9,490
• 30 Day Avg. Volume: 12,039
• PEG Ratio: 0.64
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 35.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: kr67.00 ▲(8.41% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is led by solid financial performance with strong growth and profitability, partially offset by weaker 2025 cash conversion and higher leverage. Valuation is supportive due to the reasonable P/E and strong dividend yield, while technical signals are mixed with only modest positive price positioning but negative MACD.

Positive Factors

Accelerating Revenue Growth

A sustained acceleration to ~34% revenue growth indicates stronger product demand and successful distribution execution. Over 2-6 months this underpins capacity to invest in marketing, expand channels, and supports longer-term top-line momentum that can fund scale economies and brand initiatives.

Diversified Revenue Model (Sales + Licensing)

A dual model of product sales plus brand licensing spreads revenue sources, lowers concentration risk, and enables margin expansion via royalties. Licensing provides scalable, low-capex income while DTC/wholesale balance lets the company capture retail margin or broader distribution, supporting stable revenues.

Equity Cushion on Balance Sheet

Equity materially exceeding debt gives the company a capital buffer to absorb shocks, fund strategic initiatives, and negotiate with partners. This balance sheet strength preserves financial optionality for investments, licensing deals, or slower periods without immediate solvency pressure.

Negative Factors

Rising Leverage

Debt more than doubled over two years, raising financing and refinancing risk and reducing financial flexibility. If margins or cash generation deteriorate, higher leverage increases vulnerability to interest cost swings and limits the firm's ability to invest or pursue opportunistic licensing/expansion.

Weakened Cash Conversion

Sharply lower FCF and operating cash flow imply reduced internal funding for capex, dividends, or debt paydown. Persistent weaker cash conversion constrains strategic flexibility, increases reliance on external financing, and amplifies the impact of cyclical demand shifts on long-term liquidity.

Limited Operating Leverage

Revenue growth without commensurate operating profit expansion signals margin pressure or rising costs. Over months this can limit return on incremental sales, necessitate pricing actions or cost restructuring, and might compress margins if scale efficiencies fail to materialize.

Bjorn Borg AB Business Overview & Revenue Model

Company Description

Björn Borg AB (publ), together with its subsidiaries, engages in the design, development, production, wholesale, and retail of underwear, sports apparel, footwear, bags, eyewear, and fragrances under the Björn Borg brand. The company operates through Wholesale, Consumer Direct, Distributors, and License segments. It offers underwear for men, women, and kids, as well as pajamas and socks through independent retailers, fashion and sports chains, department stores, Björn Borg stores, and e-commerce sites; and clothing collections for women and men through sports retailers, sports chains, department stores, Björn Borg stores, and e-commerce sites. The company also provides leisure and sports shoes for men and women through independent shoe retailers, shoe and sports chains, department stores, e-tailers, and Björn Borg stores, as well as through www.bjornborg.com; sports bags, backpacks, and suitcases, as well as wallets, gloves, and belts through bag retailers, sports shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites; and backpacks, gym bags, and duffle bags, as well as wallets, gloves, and belts through luggage and sporting goods shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites. Further, it offers spectacle frames and sunglasses through the licensee's distribution organizations, fashion stores, department stores, and Björn Borg stores. The company sells its products in Sweden, the Netherlands, Finland, Germany, Belgium, Norway, Denmark, England, Switzerland, the United States, Slovenia, France, and Canada. As of December 31, 2020, it operated 32 Björn Borg stores, including 29 group owned stores. The company was founded in 1984 and is headquartered in Solna, Sweden.

How the Company Makes Money

Bjorn Borg AB generates revenue through multiple streams, primarily by selling its products through a combination of direct-to-consumer channels and wholesale distribution. The company's key revenue streams include sales from its branded retail stores, e-commerce platforms, and partnerships with various retail outlets worldwide. Additionally, BORG benefits from licensing agreements, which allow third parties to produce and sell products under its brand name, further expanding its market reach. The company's focus on branding and marketing, along with collaborations with athletes and influencers, also contributes to its sales growth, enhancing brand visibility and attracting a loyal customer base.

Bjorn Borg AB Financial Statement Overview

Summary

Strong revenue acceleration and rising net income support a solid financial profile, but operating profit has not scaled with the top-line surge, free cash flow and operating cash flow weakened in 2025, and debt increased notably versus prior years—raising margin, cash-conversion, and leverage risk.

Income Statement

Revenue growth has accelerated meaningfully (up ~34% in 2025 vs. ~13% in 2024), while operating profit has remained steady around ~102m, indicating scale-driven growth but with margin pressure. Profitability is solid with net income rising to ~92m in 2025 from ~73m in 2024, though prior-year margins show volatility (strong in 2021, sharply weaker in 2020, then recovered). Overall, the business is growing well, but the latest growth appears to be coming with less incremental operating leverage.

Balance Sheet

The balance sheet is generally sound with equity of ~367m against total debt of ~108m in 2025, implying moderate leverage and a reasonable capital cushion. However, debt has increased notably versus 2024 (~59m) and 2023 (~43m), which raises financial risk if profitability were to soften. Assets have grown modestly alongside equity, suggesting stable balance sheet expansion, but the recent leverage uptick is a key watch item.

Cash Flow

Cash generation remains positive, with free cash flow of ~45m in 2025, but it declined sharply versus 2024 (~62m) and 2023 (~110m). The drop in operating cash flow (to ~55m in 2025 from ~76m in 2024) alongside higher earnings points to weaker cash conversion in the most recent year. While the company still produces cash, the trend shows increasing variability and reduced flexibility versus prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	989.70M	872.26M	835.17M	796.10M
Gross Profit	352.48M	520.65M	294.81M	424.51M	444.43M
EBITDA	131.53M	133.98M	136.83M	109.45M	147.38M
Net Income	92.06M	72.67M	75.97M	50.87M	86.03M
Balance Sheet
Total Assets	719.23M	708.87M	631.52M	653.39M	680.67M
Cash, Cash Equivalents and Short-Term Investments	13.54M	8.77M	26.65M	16.03M	96.74M
Total Debt	107.76M	58.94M	42.85M	81.65M	135.95M
Total Liabilities	358.21M	356.39M	280.71M	328.58M	346.45M
Stockholders Equity	366.84M	359.36M	357.12M	331.41M	340.08M
Cash Flow
Free Cash Flow	45.11M	61.99M	110.14M	52.18M	103.42M
Operating Cash Flow	55.27M	76.04M	121.28M	60.50M	113.93M
Investing Cash Flow	-12.40M	-14.05M	-11.14M	-8.32M	-10.51M
Financing Cash Flow	-47.29M	-77.86M	-101.55M	-135.94M	-80.12M

Bjorn Borg AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Positive. The current price of 61.8 is above the 20-day moving average (MA) of 60.71, above the 50-day MA of 60.53, and above the 200-day MA of 59.43, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 88.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVRC	78 Outperform	kr7.08B	22.69	23.71%	2.02%	6.44%	0.49%
NELLY	71 Outperform	kr3.84B	22.77	51.02%	―	12.45%	118.98%
BORG	70 Outperform	kr1.55B	17.21	23.44%	4.95%	9.20%	11.72%
BOOZT	68 Neutral	kr5.67B	18.59	―	―	1.54%	72.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOI.B	54 Neutral	kr6.41B	118.95	2.04%	6.24%	-2.98%	-30.48%
SHOT	53 Neutral	kr18.17B	29.49	21.87%	5.28%	1.45%	34.85%